The rise of GenTri
GenTri has slowly cemented its position as a major property investment destination.
Last week I discussed how developers have been landbanking and launching new projects outside of the Philippine capital.
This is how developers have been responding to lukewarm launches and demand in the Metro Manila pre-selling market, which we started to see at the height of the pandemic in 2020.
Outside Metro Manila, developers continue to gravitate towards South Luzon, especially Cavite. Backed by improving infrastructure network, dynamic economic growth, and rising purchasing incomes of investors and end-users, Cavite is definitely a hub for new, exciting, and expanding property developments.
READ: General Trias makes heroic leap to an urbanized city
Property investment destination
The Cavite-Laguna-Batangas (CALABA) corridor in South Luzon has become an ideal property investment destination outside the Philippine capital. This is due to its sustained economic growth (average of 7.8 percent from 2021 to 2022, faster than the national average) partly fueled by remittances from overseas Filipino workers (OFW) and brisk manufacturing activities.
It is also part of Region IV-A (Calabarzon), which contributed 15 percent to the Philippine economic output and accounted for 15 percent of total OFW deployment in 2022, based on data from the Philippine Statistics Authority (PSA).
These are among the reasons why property firms have aggressively developed residential projects in the region over the past few years. Data from the Bangko Sentral ng Pilipinas showed that this region alone cornered a big chunk of residential real estate loans in the third quarter last year, indicating a robust demand.
A primary manufacturing hub
The Calabarzon Region has long been a viable location for manufacturing operations.
Infrastructure projects here have facilitated the ease of transport of manufactured goods from the CALABA corridor’s industrial parks to the Philippine capital. This has resulted in Cavite attracting businesses, essentially transforming the province into a major industrial hub in South Luzon.
GenTri’s proximity to major road projects should also result in a more dynamic property market in the city.
Currently, industrial take-up in Cavite is heavily driven by manufacturing companies engaged in automotive, semi-conductors, and packaging. The Marcos administration has also scored investment pledges from foreign companies planning to either put up factories or expand operations in Cavite. These pledges, once realized, should result in stronger industrial space and warehouse absorption in Cavite, and should buoy Cavite’s ability to generate more jobs.
At the same time, the further expansion of industrial activities in Cavite is seen to support residential demand in the province.
Improving infra network
Among the earliest road projects in the south is the South Luzon Expressway (SLEx). Completed in 1969, the expressway has played a pivotal role in spurring business activities in South Luzon, helping relieve congestion in the capital region. Residents from and businesses in Cavite continue to benefit significantly from SLEx.Other notable infrastructure projects that will pass through Cavite include Cavite-Batangas expressway (CBEX), Light Rail Transit (LRT)-1 Cavite extension, Cavite-Laguna Expressway (CALAX) and the Sangley Airport rehabilitation. Colliers believes that the completion of these public projects will have immense impact on the CALABA corridor’s economic recovery and should further transform Cavite’s property market.
Evolution of Cavite’s property landscape
Over the past few years, Cavite has been known as a suburban support area for Metro Manila.
With its relatively cheaper housing costs, Cavite has drawn hundreds of thousands to settle within its boundaries and commute daily to their jobs in Metro Manila. However, the improvement of road networks in the south enabled Cavite to emerge as an urban center and move away from its previous image as a mere suburb of Metro Manila.
Colliers believes that the City of General Trias has vast potential to attract more property investments. It is definitely a thriving part of Cavite given all the project launches and developments by major property firms. The city’s proximity to major road projects should also result in a more dynamic property market in the city.
The Calabarzon Region has long been a viable location for manufacturing operations.
As I stressed in my previous columns, infrastructure plays a crucial role in raising land and property values as well as rental prospects of residential units.
Rising popularity of upscale, luxury developments
Colliers is seeing a growing interest for mid-income to luxury projects in Cavite. In 2023, these market segments covered 51 percent of total condominium take-up in the province.
In our view, Cavite’s improving connectivity to Metro Manila and the aggressive launch of mixed-use communities here should have a positive impact on land and property values. This is likely to compel developers to launch more upscale and luxury residential units in Cavite. We expect the province to remain in the radar of property developers in the years to come.
Primed for expansion
With a growing population, a continuously expanding dynamic economy, and growing interest from national property firms, Cavite’s property market is undeniably primed for further evolution and expansion.
Foreign and Filipino property developers remain keen on acquiring parcels of developable land in Cavite, as they anticipate solid demand from international investors, local employees, and Filipinos working abroad. We are excited to see more innovative and expansive vertical and horizontal projects in Cavite and the city of General Trias is definitely one of the locations likely to corner these developments.
GenTri used to be known as a mere suburb support, a periphery, but it has slowly cemented its position as major property investment destination. With the continued influx of foreign and local property players, expect further gentrification in GenTri!
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